The Fair Trade Commission of Korea has implemented substantial amendments to its guidelines for imposing fines on companies doing business in Korea. The Amendments were detailed in a document the Fair Trade Commission of Korea calls the “Amendment Notice.” This Amendment Notice comes into effect on April 1 of 2012.
The Amendment Notice will likely increase the fines imposed by the Fair Trade Commission. Prior to the Amendment Notice violations of the Monopoly Regulation and Fair Trade Act would result in lower fines than that authorized by Korean Monopoly Law. The change will, likely, substantially increase the fines.
INCREASE IN FINES FOR UNFAIR TRADE PRACTICE AND ABUSE OF DOMINANCE IN MARKET
The Amendment Notice will likely increase fines for Abuse of a Companies Dominant Market Position in Korea from 2 % to 3% of revenues earned because of the violation. Additionally,the fine will be increased from 1% to 2% of the revenue earned because of violation of the catch-all unfair trade practice prohibition.
AGGRAVATION OF FINES FOR OBSTRUCTION OF INVESTIGATIONS
The fine may be increased by 40% for the physical obstruction of an on-site investigation through violence or use of force; 30% increase for obstructing an on-site inspection through concealing, destroying or falsifying records; and 20% increase for other acts of obstruction. Multiple violations based on the same facts may, additionally, lead to an increase in the fine by 20%.
Korea’s Fair Trade Commission has been very aggressive in its enforcement of Korea’s Antitrust laws and it is advisable to have an attorney conduct a compliance audit to determine and assist in mediating your risk of an investigation, fine and criminal punishment for violation of Korea’s Monopoly Regulation and Fair Trade Act and related laws.
Additionally posts on Korea’s Antitrust/Competition law may be found at:
- Four Oil Companies in Korea Fined for Price Fixing
- The FTC of Korea: All Bark and No Bite?
- Defining the Relevant Market in Korea
- Korea’s Antitrust Evolution in Korea. Sean Hayes in Korea Times
- Antitrust/Competition Law Consent Orders in Korea
Sean Hayes, IPG’s Co-Chair of the Korea Practice Team, may be contacted at: SeanHayes@ipglegal.com
- Abuse of Superior Bargaining Power Notification by the Korea Fair Trade Commission: Distributor Risks in Korea
- Abuse of Market Dominance in Korea: Competition Law in Korea
- Korean FTC Criminal Referral Guidelines: Monopoly & Franchise Korean Law Updates
- Material Omissions in Korean Franchise Disclosure Documents in South Korea
- Korea Strengthens Data Protection Law
- Korea’s Real Name Transaction Act Strengthened: Korea’s Banking Law Basics
- Termination of Commercial Agent/Distribution Agreements in Korea: Korea’s Agent Compensation Rule
- Digital Forensic Reviews at the Korean Fair Trade Commission
- Korean Tax Law Amendments for Individuals for 2021
- Korean Corporate Tax Law Amendments for FY 2021